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Seriously? For a valve cover gasket?!? What, does one have to disassemble the upper half of the engine bay to get to it or something?

Call it....$900 in labor. At the dealership I go to (Habberstad) I think the going rate is $125/hr. Thus....7 hours of labor.

Dealers like to quote prices using the "flat rate" which is a reference tool which supposedly details how long each repair should take. In actuality, any technician/mechanic worth a darn can do the repair in about 1/3 the time. So what happens is that the dealer invoices about 20 hours for each tech, each day. Yup, he bills out $2500 a day for each tech, and that's before he marks up the parts you're buying from him too.

Dealers like to quote prices using the "flat rate" which is a reference tool which supposedly details how long each repair should take. In actuality, any technician/mechanic worth a darn can do the repair in about 1/3 the time. So what happens is that the dealer invoices about 20 hours for each tech, each day. Yup, he bills out $2500 a day for each tech, and that's before he marks up the parts you're buying from him too.

Not bad for the dealer. Often raw deal for the consumer.

I know the manuals you are referring to, and I don't disagree with your time assessment, just the thought (that i read into) that pricing should be lower.

There are manuals out there, for pretty much every car, that states what is the typical labor hours to do a specific job. Better mechanics will take less time, worse mechanics will take more time. Now how fair would it be:
1) New mechanic scenario -> Book value is 2 hours for a job, but a new mechanic, who has to take longer will be working for 3 hours. Should you pay the penalty so the new guy can learn? No, you would be annoyed and demand the expert mechanic
2) Expert mechanic scenario -> Book value is 2 hours for a job, but the expert mechanic can do it in half the time. Should the expert mechanic only make half as much money because he is better at his job? Should he make less then the new mechanic? No - that is ridiculous.

We could argue all day if the book values are correct (or not), but it is a standard way to price item. Now if it's an outrageous amount (and it may be) then obviously move along. I doubt their hours are incorrect, but their hourly rate is probably much higher then indy shop.

I know the manuals you are referring to, and I don't disagree with your time assessment, just the thought (that i read into) that pricing should be lower.

There are manuals out there, for pretty much every car, that states what is the typical labor hours to do a specific job. Better mechanics will take less time, worse mechanics will take more time. Now how fair would it be:
1) New mechanic scenario -> Book value is 2 hours for a job, but a new mechanic, who has to take longer will be working for 3 hours. Should you pay the penalty so the new guy can learn? No, you would be annoyed and demand the expert mechanic
2) Expert mechanic scenario -> Book value is 2 hours for a job, but the expert mechanic can do it in half the time. Should the expert mechanic only make half as much money because he is better at his job? Should he make less then the new mechanic? No - that is ridiculous.

We could argue all day if the book values are correct (or not), but it is a standard way to price item. Now if it's an outrageous amount (and it may be) then obviously move along. I doubt their hours are incorrect, but their hourly rate is probably much higher then indy shop.

I agree. That why we can always negotiate anything at dealerships (including service costs). Ask and you should receive at least 10%. 20% or 30% if you are good or have a good case.

I know the manuals you are referring to, and I don't disagree with your time assessment, just the thought (that i read into) that pricing should be lower.

There are manuals out there, for pretty much every car, that states what is the typical labor hours to do a specific job. Better mechanics will take less time, worse mechanics will take more time. Now how fair would it be:
1) New mechanic scenario -> Book value is 2 hours for a job, but a new mechanic, who has to take longer will be working for 3 hours. Should you pay the penalty so the new guy can learn? No, you would be annoyed and demand the expert mechanic
2) Expert mechanic scenario -> Book value is 2 hours for a job, but the expert mechanic can do it in half the time. Should the expert mechanic only make half as much money because he is better at his job? Should he make less then the new mechanic? No - that is ridiculous.

We could argue all day if the book values are correct (or not), but it is a standard way to price item. Now if it's an outrageous amount (and it may be) then obviously move along. I doubt their hours are incorrect, but their hourly rate is probably much higher then indy shop.

Very good points. However, having taken some auto mechanic classes years ago, I can tell you that the time allotment for most repairs is very, very generous. Maybe it has changed since then and time allotments have become become more realistic. Though I'd be mildly surprised if this were true.

Also, in your expert mechanic scenario -- the expert would still be rewarded for his quick work because (1) he will be installing many more (highly marked up) parts over the same period of time (2) he will gain a reputation as an expert who provides speedy service, thus his business should prosper.

Anyway, there's clearly a valid reason to apply a flat rate, but that in itself does not prove that such rate was fairly developed nor that is it being applied reasonably and appropriately.

I have been quoted $1000 by the dealer for my oil filter housing gasket in my X5, my indy confirmed that it was challenging to get to...since I have never had to add oil outside of oil changes, I decided to monitor, and not replace.

The oil filter housing is a pain in the ass by virtue of location...the real bummer is that it is literally an O-ring that they wil be replacing...like the $5 part that blew up the space shuttle challenger. The valve cylinder cover is also a VERY cheap part that is not hard to get to. I would think a trusted Indy could replace the two for half that....at least one you have a good relationship with. Are you actually getting any dripping, or is this leak what they call "seepage?" Beyond about 75000 miles, that oil filter housing seeps on all N52s. Also, some seepage at the valve cover is pretty normal with some miles. Both of these are kind of like prostate cancer...slow growing, best simply monitored, and ultimately not the cause of death.

The oil filter housing is a pain in the ass by virtue of location...the real bummer is that it is literally an O-ring that they wil be replacing...like the $5 part that blew up the space shuttle challenger. The valve cylinder cover is also a VERY cheap part that is not hard to get to. I would think a trusted Indy could replace the two for half that....at least one you have a good relationship with. Are you actually getting any dripping, or is this leak what they call "seepage?" Beyond about 75000 miles, that oil filter housing seeps on all N52s. Also, some seepage at the valve cover is pretty normal with some miles. Both of these are kind of like prostate cancer...slow growing, best simply monitored, and ultimately not the cause of death.